A colleague has queried me about providing a service for a Not For Profit organization and has claimed the invoice I send need not include tax fees. As it is a good cause, I'd like to help. I wish to charge him much less than my normal fee. If I charge 1K for services, do I need to pay tax on those earnings?
========================================= MODERATOR'S COMMENT: This sounds like a state or local sales or excise or similar tax? If so, the state or local tax authority might have established procedures and forms to cover this situation. For example, if the organization furnishes you with a State Tax Exempt certificate which exempts it from paying a state or local tax, you might be allowed to avoid invoicing or collecting or paying that tax to the state.